said it would raise as much as $100 million by selling convertible notes to qualified institutional buyers.
The Bristol, Conn., supplier of precision metal components said it would sell $85 million of the 20-year senior unsecured convertibles under
rule 144A. The company said buyers would get an option to take $15 million more. Barnes plans to use the proceeds to repay its existing revolving credit facility.
Barnes said the notes are convertible into cash and stock under certain terms, which it didn't specify. The notes will rank junior in right of payment with existing and future senior indebtedness and equal in right of payment with any of its other senior subordinated indebtedness. Barnes can't call the notes until 2011, but holders may call some notes in 2011, 2016 and 2021.
Early Monday, Barnes was at $36.03.